BP p.l.c. (BP) AI Stock Analysis

• Market Cap: £69.57B
• Dividend Yield: 5.46%
• Average Volume (3M): 26.71M
• Price to Earnings (P/E): 63.1
• Beta (1Y): 1.02
• Revenue Growth: -6.90%
• EPS Growth: -43.82%
• Country: UK
• Employees: 100,500
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.11
• Shares Outstanding: 15,682,013,000
• 10 Day Avg. Volume: 25,231,935
• 30 Day Avg. Volume: 26,714,907
• PEG Ratio: -2.16
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 6.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £469.09
• Price Target Upside: 4.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: 500.00p ▲(11.01% Upside)

BP's overall stock score is driven by strong earnings call results and positive technical indicators, reflecting robust operational performance and strategic progress. However, high leverage and a high P/E ratio suggest caution. The attractive dividend yield provides a counterbalance, offering income potential for investors.

Positive Factors

Operational Efficiency

BP's strong operational performance and strategic progress, including exploration successes, indicate robust efficiency and potential for sustained growth.

Exploration Success

Significant exploration discoveries enhance BP's resource base, supporting long-term production growth and competitive positioning in the energy sector.

New Projects

Timely completion of new projects strengthens BP's production capabilities and market presence, ensuring future revenue streams and operational stability.

Negative Factors

High Debt Levels

High leverage poses financial risks, potentially limiting BP's flexibility to invest in growth opportunities or weather economic downturns.

Declining Revenue Growth

A sharp decline in revenue growth indicates market challenges and pressures on BP's ability to maintain profitability and shareholder returns.

Liquidity Challenges

Decreasing free cash flow growth suggests potential liquidity issues, which could impact BP's capacity to fund operations and strategic initiatives.

BP p.l.c. Business Overview & Revenue Model

Company Description

BP p.l.c. (BP) is a global oil and gas company headquartered in London, England. It operates across all sectors of the energy industry, including exploration, production, refining, distribution, and marketing of oil and natural gas, as well as renewable energy sources. BP's core products include crude oil, natural gas, and petrochemicals, alongside its investments in alternative energy solutions such as wind and solar power. The company is also involved in the development of technologies aimed at reducing carbon emissions.

How the Company Makes Money

BP generates revenue primarily through the exploration, extraction, and sale of oil and natural gas. The company earns money by selling crude oil and natural gas to refineries and other customers, as well as through its refining operations, where it processes crude oil into various petroleum products. Additionally, BP has a significant retail segment that sells fuels and convenience store products to consumers through its global network of service stations. The company also invests in renewable energy projects, which contribute to its earnings as global demand for green energy increases. Key revenue streams include upstream activities (exploration and production), downstream operations (refining and marketing), and renewable energy investments. BP's strategic partnerships and joint ventures with other energy companies also enhance its capabilities and market reach, contributing to its overall profitability.

BP p.l.c. Financial Statement Overview

Summary

BP's financial statements reflect a challenging market environment with declining revenue growth and profitability issues. The balance sheet shows a leveraged position with potential risks, and cash flow analysis indicates liquidity challenges. Despite these challenges, BP maintains operational efficiency.

Income Statement

BP's income statement shows a mixed performance. The TTM data reveals a significant decline in revenue growth rate at -44.1%, indicating a challenging market environment. Gross profit margin stands at 15.43%, which is relatively stable, but the net profit margin is negative at -0.64%, reflecting profitability issues. EBIT and EBITDA margins are moderate at 5.45% and 14.42%, respectively, suggesting operational efficiency but also highlighting the impact of external pressures on profitability.

Balance Sheet

The balance sheet indicates a high debt-to-equity ratio of 1.22, which suggests a leveraged position that could pose risks if market conditions worsen. Return on equity is negative at -2.02%, reflecting challenges in generating returns for shareholders. However, the equity ratio is a moderate 20.81%, indicating a balanced asset structure. Overall, the balance sheet reflects a stable yet cautious financial position.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth at -15.72%, indicating potential liquidity challenges. The operating cash flow to net income ratio is 0.39, suggesting adequate cash generation relative to net income. However, the free cash flow to net income ratio of 0.41 highlights the need for improved cash management. Overall, the cash flow statement reflects a need for strategic adjustments to enhance liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	186.58B	185.23B	213.67B	240.86B	154.71B	112.38B
Gross Profit	36.20B	28.11B	47.39B	54.05B	21.65B	-534.61M
EBITDA	31.08B	25.11B	42.89B	29.37B	27.82B	-7.46B
Net Income	1.56B	382.83M	15.50B	-2.48B	7.42B	-21.54B
Balance Sheet
Total Assets	280.46B	282.23B	280.29B	288.12B	287.27B	267.65B
Cash, Cash Equivalents and Short-Term Investments	35.05B	34.52B	28.59B	29.77B	30.96B	29.53B
Total Debt	74.82B	71.55B	63.08B	55.49B	69.79B	81.93B
Total Liabilities	202.81B	203.91B	194.80B	205.13B	196.83B	182.09B
Stockholders Equity	58.24B	59.25B	70.28B	67.55B	75.46B	71.25B
Cash Flow
Free Cash Flow	10.67B	12.00B	17.75B	28.86B	12.72B	-144.00M
Operating Cash Flow	24.30B	27.30B	32.04B	40.93B	23.61B	12.16B
Investing Cash Flow	-11.24B	-13.25B	-14.87B	-13.71B	-5.69B	-7.86B
Financing Cash Flow	-12.51B	-7.30B	-13.36B	-28.02B	-18.08B	3.96B

BP p.l.c. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 450.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BP, the sentiment is Neutral. The current price of 450.4 is below the 20-day moving average (MA) of 457.32, above the 50-day MA of 439.23, and above the 200-day MA of 398.66, indicating a neutral trend. The MACD of 4.00 indicates Positive momentum. The RSI at 49.23 is Neutral, neither overbought nor oversold. The STOCH value of 49.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:BP.

BP p.l.c. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHEL	73 Outperform	£163.26B	15.13	8.25%	3.94%	-9.21%	-2.61%
SEPL	73 Outperform	£1.75B	10.79	12.03%	5.91%	159.13%	143.76%
ENOG	73 Outperform	£1.77B	10.89	17.24%	10.79%	-2.66%	0.11%
BP	71 Outperform	£69.57B	63.11	2.40%	5.46%	-6.90%	-43.82%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ITH	65 Neutral	£3.67B	-29.56	-4.67%	13.21%	63.10%	-161.03%
HBR	63 Neutral	£3.79B	-10.03	-11.32%	8.49%	123.03%	-330.89%